Spotify shares plunge on stock market after weak profit outlook and slower growth in premium subscriptions

Shares down 9% on back of sluggish subscription sales

Trade

Daniel Ek, Spotify

Spotify is forecasting lower profit and slower growth in paying subscribers for the second quarter of 2026 than analysts had expected. As a result, the share price fell by almost 9% in pre-market trading.

The Swedish streaming company expects an operating profit of €630 million, whereas analysts on average had pencilled in €684 million. That is also clearly below the record profit of €715 million in the first quarter. That earlier profit was partly driven by lower payroll tax costs linked to the share price.

Spotify expects the total number of monthly active users to rise to 778 million, slightly above the market forecast of 773 million. But the number of premium subscribers is projected to reach 299 million, below the expected 302 million. That points to slower growth in key markets such as Europe and North America.

In the first quarter, revenue rose by 8% to €4.53 billion, in line with expectations. For the second quarter, Spotify is predicting revenue of €4.8 billion, again roughly in line with analysts’ forecasts.

The company, recently put under the joint leadership of co-CEOs Gustav Söderström and Alex Norström, is continuing to invest in AI features such as AI DJ and AI Playlist to keep users engaged for longer and compete more effectively with Apple and Amazon.

Spotify is continuing to expand its platform and is adding another eye-catching feature. After podcasts, audiobooks and even book sales, the company is now also betting on fitness content.

A dedicated Fitness hub has been launched within the app, giving users access to more than 1,400 workouts. These range from running and yoga to meditation and strength training.

According to Spotify, the expansion is not as odd as it may seem. Many people already use the app while exercising to listen to music or playlists.

Most fitness classes are currently in English, with a smaller selection in other languages such as Spanish and German.

Emerce

Read More: Results Spotify